BANKRUPTCIES AND INSOLVENCY PROCEEDINGS

Information on the judicial proceedings of insolvent companies

STATE OF INSOLVENCY

In carrying out his activity, an entrepreneur may find himself in a particular state of economic and financial crisis that prevents him from paying his debts, and is defined a state of insolvency.

His inability to fulfil the obligations he has taken on results in his creditors being entitled to receive satisfaction for the amounts due them through a guarantee of equal treatment.

CONTROLLED ADMINISTRATION PROCEDURES

Controlled administration procedures have as their object the entire wealth of the entrepreneur and relate to all creditors. The main aim of each of them is essentially to drastically reduce the autonomy of the entrepreneur by taking away his access to assets and nominating a body to control activities.

Controlled administration procedures are implemented in the following situations:

state of insolvency

serious management irregularities

temporary difficulty in fulfilling obligations.

WHAT ARE CONTROLLED ADMINISTRATION PROCEDURES

There are various types of controlled administration procedure: the main ones, all regulated by law, are:

bankruptcy

arrangement with creditors

administrative compulsory liquidation

special administration measures.

According to which phase the procedure is in, the business may have a pending or final "status" in the Business Register, for example: